France's Imerys wants to become leading lithium producer in Europe (updated)
24/10/2022 08:29
(Adds share price move in paragraph four)
PARIS, Oct 24 (Reuters) - French minerals company Imerys
IMTP.PA said on Monday it wanted to become the leading
supplier of lithium in Europe through a mining project in
France.
The announcement comes as European miners rush to launch
domestic production of the raw material, a key component in
electric vehicle batteries which is currently sourced almost
entirely from outside the bloc.
Imerys said results of surveys carried out at its Beauvoir
mine in the Allier department in central France suggest it will
be able to produce 34,000 tonnes of lithium hydroxide for at
least 25 years from 2028, enough to supply around 700,000
electric car batteries.
The company's shares rose by 5% in early Paris trade.
Electric cars are a key plank of European Union plans to cut
emissions, and the bloc is trying to reduce reliance on battery
supplies from Asia through projects with European-based
carmakers and battery specialists.
Almost all the critical minerals currently come from outside
the continent, with China dominating the global supply chain.
The world's main lithium suppliers also include Australia and
Argentina.
European Commission President Ursula von der Leyen said last
month that "lithium and rare earths will soon be more important
than oil and gas", adding that the bloc's demand for rare earths
alone will increase fivefold by 2030.
Various miners are exploring domestic European lithium
projects including in Austria, Germany and the Czech Republic.
Imerys' French rival Eramet ERMT.PA is exploring a project
in the Alsace region.
Imerys said its Beauvoir project is estimated to involve
capital expenditure in its construction of around 1 billion
euros, equating to an estimated cash cost per kilo of between 7
and 9 euros per kilo.
The site has been producing kaolin for ceramics since the
late 19th century.
(Reporting by Dominique Vidalon; Editing by Tassilo Hummel and
David Holmes)
((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters
Messaging: dominique.vidalon.reuters.com@reuters.net))